Elanor grabs WorkZone West for $125m in second WA buy

Camera IconWorkZone West at 202 Pier Street is a modern A-grade office developed by Charter Hall and finished in 2013.Picture: Savills

George Street Sydney-based fund manager Elanor Investors Group’s $125.25 million play for WorkZone West — Perth’s biggest CBD office transaction this year — has been timed to perfection, capitalising on Perth’s recovering commercial property market.

The office component of the 15,603sqm building, which includes A-grade office within substantial 2443sqm floor plates, is leased to CBP Contractors, formerly Leighton Contractors and Thiess, for 7.4 years.

Elanor chief executive Glen Willis said the deal was “excellent value for our capital partners and highlights Elanor’s ability to originate and execute on high-quality investments across the country”.

With the exception of an Albany hotel, WorkZone West is Elanor’s first WA purchase.

The fund manager’s co-head of real estate David Burgess said the acquisition of 202 Pier Street Perth was attractive because of its CBD fringe location, large floor plates and the timing of the transaction.

WorkZone West is to be held in Elanor’s WorkZone West Syndicate. It has end-of-trip facilities, “quality ground-floor food and beverage offerings” and parking for 139 cars.

The deal was brokered off-market by Savills, with a team of negotiators including Savills WA managing director Graham Postma, with Nick Charlton, Ben Azar and Paul Craig.

Charter Hall developed the building, part of a 28,000sqm office campus including WorkZone East, finishing it in 2013, just as Perth’s CBD office vacancies ballooned.

It sold WorkZone East to CorVal Partners for $68.3 million last year.

Of the WorkZone West syndicate equity, Elanor Commercial Property Fund said it planned to chip in roughly 51 per cent. The purchase, to settle at the end of next month, would deliver significant strategic benefits for Elanor, improving its geographic and tenancy mix, improving its portfolio’s weighted-average lease expiry term to six years and occupancy to 98 per cent “while maintaining ECPF’s strong income yield”.

Mr Postma said there was strong bidding from offshore private investors as well as domestic funds and real estate investment trusts.

“The fundamentals were fantastic,” Mr Postma said.

WorkZone West will take Elanor’s portfolio of owned and managed assets to $1.25 billion-plus.